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Around 7,000 of the coffee giant's outlets will start accepting payment via Square

Starbucks has poured $25m into the Square payment start-up set up by Twitter co-founder Jack Dorsey, committing to introduce its technology in to 7,000 of its outlets.

Square's payment technology enables retailers to accept card payments via a device that plugs in to a smartphone or tablet. That enables customers to pay for goods and services without having to hand over their payment card.

As part of the agreement, Schultz will take a seat on Square's board and Dorsey said the deal was a key step forward for the firm.

“More than two million individuals and businesses can already use Square. This partnership will accelerate our ability to provide them with the tools they need to grow their business and thrive in today’s economy,” he said.

Dorsey sprang to prominence after setting up Twitter, alongside colleagues Biz Stone and Evan Williams, which has now become one of the world's most popular websites.

He set up Square in 2009, and has seen the service grow steadily since, although it has yet to expand its operations to the UK. It is also currently limited to users with Visa or American Express payment cards.